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Private Passenger Auto & What It Means to You

Private Passenger Auto & What It Means to You

1.“My car is another year older, why does my car insurance continue to go up”?

2.“I have never gotten in an accident; shouldn’t my car insurance get cheaper every year”?

3.“My car is depreciating more and more, shouldn’t my car insurance rate also go down with it’?

If you’ve ever asked yourself these questions, you’re not alone. These are questions we face and answer every day with new and existing clients.

We recently read a story from Guy Carpenter that puts the ever-increasing personal auto insurance premiums into perspective. He advised several negative loss trend factors play a part. From the increase in number of registered vehicles on the road, miles driven, distracted drivers, amount of traffic fatalities, the increase in speed limits, the number of impaired drivers behind the wheel & the costs associated with vehicle repair & settling claims.

Not to worry, all insurance carriers are working diligently to try to find ways to reduce the premium for drivers & their vehicles, without sacrificing profitability. There have been a few POSITIVE loss trend factors as well. The increase in auto insurance rates with captive agencies (An insurance agent who only works for one insurance company, is a captive agent), helps to drive the premium down for independent agents to fit within any budget. There are many safety and monitoring devices insurance carriers have implemented to track telematics and when a vehicle around you may be driving out of control. There has been in increase in driver assistance technology, you know, the vehicles that will parallel park for you. And, while all of that is at your fingertips, the insurance carriers also have better underwriting tools, to help keep costs down.



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